Measurements for Top 100

This year's HCIA and Mercer ranking was based on these nine measures of clinical quality practices, operations, and financial management:

Risk-adjusted mortality index: number of actual deaths divided by number expected, given risk of death for each patient.

Risk-adjusted complications index: number of actual complications divided by number expected, given risk of complication for each patient.

Severity-adjusted average length of stay: average patient length of stay, adjusted for differences in severity of illness.

Expense per adjusted discharge, case mix- and wage-adjusted: total operating expenses divided by number of adjusted discharges, case mix- and wage-adjusted.

Profitability (cash flow margin): sum of net income, depreciation, and interest expense divided by sum of net patient revenue and total other income.

Index of outpatient activity: sum of two rankings - proportion of outpatient revenue and growth in outpatient revenue.

Index of total facility occupancy.

Long-term growth in equity: average annual compound growth in equity from 1993 to 1995.

Productivity (total asset turnover ratio): net patient revenue divided by total assets.